Kentucky Retirement System requests comprehensive audit called for by Ky. Chamber

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Ten months after the Kentucky Chamber of Commerce called on the state auditor to conduct a comprehensive performance audit of the woefully underfunded Kentucky Retirement System (KRS), the system itself is now calling for the audit as well.

In a special meeting of the KRS Board of Trustees Friday, Oct. 23, a resolution requesting a comprehensive audit and peer benchmarking study of KRS was passed by the retirement group’s board.

The system is making a request similar to what the Chamber has been calling for as the resolution states the audit should be initiated by the state auditor and the audit should be funded by the Kentucky General Assembly.

Current state Auditor Adam Edelen has expressed his support for such an audit in interviews with the Kentucky Chamber and has noted the need for funding from the legislature. Edelen told the Chamber he plans to push for the funding needed for the audit to bring in outside experts to take an independent look at the system.

In their resolution, the KRS board encourages the General Assembly to allocate funds for the audit outside of the money appropriated to pay the full actuarially required contribution. The board encourages the General Assembly to appropriate “up to $1,000,000” to fund such a comprehensive audit and study.

The KRS board states in the resolution that the system will fully cooperate with such an audit. See a full copy of the resolution here.

Others have also supported the Chamber’s call for a comprehensive performance audit of the system including candidates for governor, Edelen and his opponent in the auditor’s race Mike Harmon, legislators and others.

The Kentucky Chamber recently again called for action on the audit request in an op-ed from the Chamber’s Public Pension Task Force.

In the same special meeting of the KRS Board of Trustees, KRS Executive Director Bill Thielen called off his retirement as he agreed to a new contract with a salary bump. Read the details here.

Keep checking Bottom Line for more updates on the audit request and other pension news.

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Jacqueline Pitts
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